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IN THE MATTER OF:
AMERICAN HONDA FINANCE
d/b/a HONDA FINANCIAL SERVICES
d/b/a ACURA FINANCIAL SERVICES
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WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part II of Chapter 668, Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, “Finance Companies”;
WHEREAS, AHFC is a California corporation that is currently licensed as a sales finance company under Part II of Chapter 668, Sections 36a-535, et seq., of the Connecticut General Statutes;
WHEREAS, on May 29, 2012, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17(a) of the 2012 Supplement to the General Statutes into the activities of AHFC to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, as a result of such examination, the Commissioner alleges that from October 1, 2005 to June 6, 2011, AHFC engaged in the business of a sales finance company in Connecticut from two locations without a license, in violation of Section 36a-536 of the Connecticut General Statutes;
WHEREAS, AHFC represents that it voluntarily renewed its license to engage in the business of a sales finance company in Connecticut when it discovered the lapse in its prior licensure;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against AHFC, including proceedings to issue a cease and desist order against AHFC pursuant to Sections 36a-543(d) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty on AHFC pursuant to Section 36a-543(d) of the Connecticut General Statutes and Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 12-96;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, the Commissioner and AHFC acknowledge the possible consequences of formal administrative proceedings, and AHFC voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
WHEREAS, AHFC herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for ensuring compliance with sales finance company licensure requirements in Connecticut;
AND WHEREAS, AHFC, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for a hearing as it pertains to the allegation set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, AHFC, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
||No later than the date this Consent Order is executed by AHFC, AHFC shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Twenty-Two Thousand Four Hundred Dollars ($22,400), Twenty Thousand Dollars ($20,000) of which shall constitute a civil penalty and Two Thousand Four Hundred Dollars ($2,400) of which shall represent past due licensing fees; and|
||AHFC shall not engage in the business of a sales finance company in Connecticut without a license, in violation of Section 36a-536 of the Connecticut General Statutes. |
NOW THEREFORE, the Commissioner enters the following:
||The Sanctions set forth above be and are hereby entered;|
||Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against AHFC based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against AHFC based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by AHFC and reflected herein is subsequently discovered to be untrue; |
||Nothing in the issuance of this Consent Order shall adversely affect the ability of AHFC to apply for or obtain licenses or renewal licenses under Part II of Chapter 668, Sections 36a-535, et seq., of the Connecticut General Statutes; and|
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 9th day of January 2013. ________/s/_________
Howard F. Pitkin
I, Hideyoshi Takarada, state on behalf of American Honda Finance Corporation d/b/a Honda Financial Services d/b/a Acura Financial Services, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of American Honda Finance Corporation d/b/a Honda Financial Services d/b/a Acura Financial Services; that American Honda Finance Corporation d/b/a Honda Financial Services d/b/a Acura Financial Services agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that American Honda Finance Corporation d/b/a Honda Financial Services d/b/a Acura Financial Services voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Hideyoshi Takarada
Title: Vice President & Treasurer
American Honda Finance Corporation
d/b/a Honda Financial Services
d/b/a Acura Financial Services
State of: California
County of: Los Angeles
On this the 2nd day of January 2013, before me, Kathryn L. Tamer, the undersigned officer, personally appeared Hideyoshi Takarada who acknowledged himself to be the Vice President & Treasurer of American Honda Finance Corporation d/b/a Honda Financial Services d/b/a Acura Financial Services, a corporation, and that he as such Vice President & Treasurer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Vice President & Treasurer.
In witness whereof I hereunto set my hand.
Date Commission Expires: November 20, 2016
Administrative Orders and Settlements